Power Solutions International Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
Power Solutions International (Nasdaq: PSIX) reported second quarter 2026 net sales of $152.5 million, down 21% year over year, with net income of $16.9 million and diluted EPS of $0.73. Gross profit was $41.4 million, with gross margin of 27.1%, versus 28.2% a year earlier but approximately 420 basis points higher than the first quarter of 2026.
Operating expenses fell 19% to $17.4 million, including a 27% reduction in SG&A. Adjusted EBITDA was $26.8 million. Cash reached $70.1 million and total debt declined to $72.6 million, a reduction of about $30.8 million during the quarter. The January 2026 acquisition of MTL Manufacturing & Equipment contributed positively to net income and expanded in-house component manufacturing. The company expects second-half 2026 sales to exceed first-half levels and be approximately in line with second-half 2025, while noting ongoing softness in oil and gas and continued ramp-up costs at its Wisconsin operations.
Positive
- Sequential sales growth of 18.6% versus first quarter 2026
- Second quarter net income $16.9 million and diluted EPS $0.73
- Gross margin 27.1%, up ~420 bps sequentially versus first quarter 2026
- Total debt reduced by approximately $30.8 million during the quarter to $72.6 million
- Cash and cash equivalents increased to $70.1 million from $41.3 million at December 31, 2025
- SG&A expenses down 27% year over year to $12.1 million in Q2 2026
- January 2026 MTL acquisition contributed positively to consolidated net income in Q2 2026
Negative
- Net sales down 21% year over year to $152.5 million in Q2 2026
- Net income declined 67% year over year to $16.9 million in Q2 2026
- Second quarter gross margin fell 110 bps year over year to 27.1%
- First-half 2026 net sales down 14% year over year to $281.1 million
- Ongoing softness in oil and gas end market expected to weigh on revenue
- Capacity ramp-up in Wisconsin expected to keep elevated production costs and pressure gross margin
- Company is not providing formal full-year 2026 guidance due to order timing variability
News Explained
At June 30, 2026, $65.0 million of PSI’s $72.6 million debt remained in revolving borrowings after the quarter’s paydown.
PSI has reported results for the quarter ended
The remaining debt included
The release attributes the reduction partly to operating cash flow: Q2 operating cash flow was
Market reaction after 2Q26 earnings report: PSIX +19.62%
Following this news, PSIX has gained 19.62%, reflecting a significant positive market reaction. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $39.50.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 11 | First-quarter earnings | Negative | -39.1% | Lower Q1 sales, income, and EPS alongside reduced gross margin |
| Mar 02 | Fourth-quarter earnings | Positive | -29.0% | Record full-year sales and income contrasted with Q4 margin compression |
| Nov 06 | Third-quarter earnings | Positive | -19.1% | Record sales and income growth despite gross-margin decline from product mix |
| Aug 07 | Second-quarter earnings | Positive | +13.6% | Record sales and sharply higher income and EPS, plus debt reduction |
| May 08 | First-quarter earnings | Positive | +9.4% | Strong sales and income growth with higher gross margin and EPS |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events had a mixed but predominantly negative reaction pattern, with an average move of -12.86% across five events.
Key Terms
diluted eps financial
gross margin financial
valuation allowance financial
revolving credit agreement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Net Sales of
Second Quarter Net Income of
Diluted EPS of
Total Debt Reduced by Approximately
WOOD DALE, Ill., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company” or “PSI”) (Nasdaq: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, today announced its financial results for the second quarter of 2026.
Financial Highlights
| Quarter Ended | |||
| ($ in millions, except per share amounts) | June 30, 2026 | June 30, 2025 | Change |
| Net Sales | (21)% | ||
| Gross Profit | (24)% | ||
| Gross Margin % | (1.1)% | ||
| Net Income | (67)% | ||
| Diluted Earnings per Share | |||
Kenneth Li, Interim Chief Executive Officer and Chief Financial Officer, said:
“Our second quarter results reflect continued progress as we execute our strategy and invest in the long-term growth of the business. Second quarter sales increased
“Compared with a strong prior-year quarter, revenue reflected the timing of certain Power Systems shipments and softer demand in our oil and gas business. Looking ahead, demand for our data center power solutions remains strong. Based on our current production schedule, we expect second-half sales to exceed first-half sales as larger Power Systems orders move into production, although shipment timing and quarterly results may vary.”
Second Quarter 2026 Results
Net sales for the second quarter of 2026 were
Gross profit for the second quarter of 2026 was
Research and development expenses during the three months ended June 30, 2026 and 2025 were
Selling, general and administrative expenses were
Interest expense was
Income tax expense was
Balance Sheet Update
The Company’s cash and cash equivalents were approximately
MTL Update
On January 9, 2026, the Company acquired MTL Manufacturing & Equipment, Inc. MTL’s operations contributed positively to the Company’s consolidated net income in the second quarter. The acquisition expanded PSI’s vertical integration by adding in-house manufacturing capabilities for components used in power generation products, including fuel tanks and electrical enclosure panels. The Company believes that these capabilities can enhance supply chain control and manufacturing flexibility and support future growth.
Outlook for 2026
Given ongoing variability in order timing and market conditions, the Company is not providing formal full-year guidance at this time. Based on the current production schedule and information available as of the date of this release, the Company expects second-half 2026 sales to exceed first-half 2026 sales and to be approximately in line with sales in the second half of 2025, as larger Power Systems orders move into production and are recognized as revenue. However, the timing and ultimate volume of those shipments remain subject to customer scheduling, manufacturing throughput, supply chain factors and other variables. There can be no assurance that those orders will translate to a uniformly stronger second half. Continued softness in the oil and gas end market is expected to weigh on quarterly revenue trends, and capacity ramp-up activities at the Company’s Wisconsin operations and their related cost effects on gross margin are expected to continue.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers and end-user customers within the power systems, industrial and transportation end markets. The Company’s in-house design, prototyping, engineering and testing capabilities allow PSI to customize high-performance engines using a fuel-agnostic strategy to run on a wide variety of fuels, including natural gas, propane, gasoline, diesel and biofuels.
PSI develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, and microgrid solutions, as well as products and packages supporting the growing data center markets. PSI’s industrial end market provides engine and battery powertrain solutions to serve applications such as forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. PSI’s transportation end market provides engine powertrain solutions to specialized applications such as terminal tractors, port equipment, military vehicles, and other non-road vocational vehicles. For more information on PSI, visit www.psiengines.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the Company’s current expectations and assumptions regarding future events. Words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “outlook,” “plan,” “position,” “project,” “prospect,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in or implied by such statements.
Important factors that could cause actual results to differ materially include, without limitation: the timing and ultimate conversion of Power Systems orders into revenue, including data-center-related orders, and the volume and timing of related shipments; quarterly variability in product mix and the corresponding effect on gross profit and gross margin; the cost, pace, throughput and operational outcomes of capacity ramp-up activities at the Company’s Wisconsin operations, including the duration and magnitude of related production costs; the Company’s ability to execute operational improvement initiatives on the anticipated timetable; the level and persistence of customer demand in the power systems, industrial and transportation end markets; volatility in oil and gas prices and corresponding demand for related products; supply-chain disruptions, component availability and supplier performance; macroeconomic, regulatory and trade conditions, including U.S. tariffs and trade restrictions; integration of recent and future acquisitions, including the acquisition of MTL Manufacturing and Equipment; the outcome of pending or threatened litigation and regulatory inquiries, including the previously disclosed putative federal securities class action; changes in management or other personnel, including the timing of any related disclosures; the ability to recruit and retain key employees; the impact of changes in our effective tax rate or applicable tax legislation; and the other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company’s subsequent filings with the U.S. Securities and Exchange Commission, all of which are incorporated by reference into this press release.
The Company’s forward-looking statements speak only as of the date of this release. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements.
Results of operations for the three and six months ended June 30, 2026, compared with the three and six months ended June 30, 2025 (UNAUDITED):
| (in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | 2026 | 2025 | Change | % Change | |||||||||||||||||||||
| Net sales (to related parties | $ | 152,544 | $ | 191,907 | $ | (39,363 | ) | (21)% | $ | 281,136 | $ | 327,353 | $ | (46,217 | ) | (14)% | ||||||||||||
| Cost of sales (derived from related party net sales | 111,176 | 137,824 | (26,648 | ) | (19)% | 210,344 | 232,976 | (22,632 | ) | (10)% | ||||||||||||||||||
| Gross profit | 41,368 | 54,083 | (12,715 | ) | (24)% | 70,792 | 94,377 | (23,585 | ) | (25)% | ||||||||||||||||||
| Gross margin % | 27.1 | % | 28.2 | % | (1.1 | )% | 25.2 | % | 28.8 | % | (3.6 | )% | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||
| Research and development expenses | 5,051 | 4,615 | 436 | 9,856 | 8,859 | 997 | ||||||||||||||||||||||
| Research and development expenses as a % of sales | 3.3 | % | 2.4 | % | 0.9 | % | 3.5 | % | 2.7 | % | 0.8 | % | ||||||||||||||||
| Selling, general and administrative expenses | 12,117 | 16,680 | (4,563 | ) | (27)% | 25,095 | 27,789 | (2,694 | ) | (10)% | ||||||||||||||||||
| Selling, general and administrative expenses as a % of sales | 7.9 | % | 8.7 | % | (0.8 | )% | 8.9 | % | 8.5 | % | 0.4 | % | ||||||||||||||||
| Amortization of intangible assets | 280 | 306 | (26 | ) | (8)% | 529 | 613 | (84 | ) | (14)% | ||||||||||||||||||
| Total operating expenses | 17,448 | 21,601 | (4,153 | ) | (19)% | 35,480 | 37,261 | (1,781 | ) | (5)% | ||||||||||||||||||
| Operating income | 23,920 | 32,482 | (8,562 | ) | (26)% | 35,312 | 57,116 | (21,804 | ) | (38)% | ||||||||||||||||||
| Other expense (income), net: | ||||||||||||||||||||||||||||
| Interest expense (from related parties of | 1,570 | 1,700 | (130 | ) | (8)% | 3,315 | 3,466 | (151 | ) | (4)% | ||||||||||||||||||
| Other expense (income) | (122 | ) | (295 | ) | 173 | NM | (208 | ) | (295 | ) | 87 | NM | ||||||||||||||||
| Total other expense, net | 1,448 | 1,405 | 43 | 3,107 | 3,171 | (64 | ) | (2)% | ||||||||||||||||||||
| Income before income taxes | 22,472 | 31,077 | (8,605 | ) | (28)% | 32,205 | 53,945 | (21,740 | ) | (40)% | ||||||||||||||||||
| Income tax expense (benefit) | 5,611 | (20,135 | ) | 25,746 | NM | 8,044 | (16,349 | ) | 24,393 | NM | ||||||||||||||||||
| Net income | $ | 16,861 | $ | 51,212 | $ | (34,351 | ) | (67)% | $ | 24,161 | $ | 70,294 | $ | (46,133 | ) | (66)% | ||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||||
| Basic | $ | 0.73 | $ | 2.23 | $ | (1.50 | ) | (67)% | $ | 1.05 | $ | 3.06 | $ | (2.01 | ) | (66)% | ||||||||||||
| Diluted | $ | 0.73 | $ | 2.22 | $ | (1.49 | ) | (67)% | $ | 1.05 | $ | 3.05 | $ | (2.00 | ) | (66)% | ||||||||||||
| Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||
| Adjusted net income * | $ | 17,971 | $ | 51,769 | $ | (33,798 | ) | (65)% | $ | 25,976 | $ | 71,004 | $ | (45,028 | ) | (63)% | ||||||||||||
| Adjusted net income per share – diluted* | $ | 0.78 | $ | 2.24 | $ | (1.46 | ) | (65)% | $ | 1.13 | $ | 3.07 | $ | (1.94 | ) | (63)% | ||||||||||||
| EBITDA * | $ | 25,723 | $ | 34,108 | $ | (8,385 | ) | (25)% | $ | 38,893 | $ | 60,024 | $ | (21,131 | ) | (35)% | ||||||||||||
| Adjusted EBITDA * | $ | 26,833 | $ | 34,665 | $ | (7,832 | ) | (23)% | $ | 40,708 | $ | 60,734 | $ | (20,026 | ) | (33)% | ||||||||||||
NM Not meaningful
* See reconciliation of non-GAAP financial measures to GAAP results below
| POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except par values) | As of June 30, 2026 (unaudited) | As of December 31, 2025 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 70,062 | $ | 41,250 | ||||
| Restricted cash | 4,461 | 3,698 | ||||||
| Accounts receivable, net of allowances of | 80,180 | 90,446 | ||||||
| Income tax receivable | 2,879 | 6,442 | ||||||
| Inventories, net | 127,582 | 127,363 | ||||||
| Prepaid expenses | 3,859 | 4,500 | ||||||
| Contract assets | 12,507 | 15,965 | ||||||
| Other current assets | 1,004 | 1,256 | ||||||
| Total current assets | 302,534 | 290,920 | ||||||
| Property, plant and equipment, net | 31,908 | 23,014 | ||||||
| Operating lease right-of-use assets, net | 59,267 | 52,911 | ||||||
| Intangible assets, net | 1,327 | 1,236 | ||||||
| Goodwill | 34,921 | 29,835 | ||||||
| Deferred tax assets | 9,517 | 13,322 | ||||||
| Customs-related deposits | 13,424 | 12,893 | ||||||
| Other noncurrent assets | 419 | 614 | ||||||
| TOTAL ASSETS | $ | 453,317 | $ | 424,745 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable (to related parties | $ | 49,508 | $ | 48,196 | ||||
| Tariff refund liability | 22,687 | — | ||||||
| Current maturities of long-term debt | 935 | 28 | ||||||
| Finance lease liability, current | 397 | 355 | ||||||
| Operating lease liability, current | 7,561 | 6,346 | ||||||
| Other short-term financing | 250 | — | ||||||
| Other accrued liabilities (to related parties | 36,247 | 37,353 | ||||||
| Total current liabilities | 117,585 | 92,278 | ||||||
| Long-term debt, net of current maturities | 4,848 | 10 | ||||||
| Revolving line of credit, long-term | 65,000 | 95,000 | ||||||
| Finance lease liability, long-term | 1,219 | 1,224 | ||||||
| Operating lease liability, long-term | 53,676 | 49,397 | ||||||
| Noncurrent contract liabilities | 1,649 | 1,699 | ||||||
| Other noncurrent liabilities | 6,272 | 6,528 | ||||||
| TOTAL LIABILITIES | $ | 250,249 | $ | 246,136 | ||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock – | 23 | 23 | ||||||
| Additional paid-in capital | 158,308 | 157,602 | ||||||
| Retained earnings | 46,637 | 22,476 | ||||||
| Treasury stock, at cost, 67 and 76 shares at June 30, 2026 and December 31, 2025, respectively | (1,900 | ) | (1,492 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 203,068 | 178,609 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 453,317 | $ | 424,745 | ||||
| POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||
| (in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net income | $ | 16,861 | $ | 51,212 | $ | 24,161 | $ | 70,294 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
| Amortization of intangible assets | 280 | 306 | 529 | 613 | ||||||||||||
| Depreciation | 1,401 | 1,025 | 2,844 | 2,000 | ||||||||||||
| Noncash lease expense | 1,897 | 1,026 | 3,336 | 2,974 | ||||||||||||
| Stock-based compensation expense | 430 | 154 | 854 | 307 | ||||||||||||
| Amortization of financing fees | 151 | 166 | 302 | 331 | ||||||||||||
| Deferred income taxes | 2,671 | (26,925 | ) | 3,805 | (26,925 | ) | ||||||||||
| Provision (credit) for losses in accounts receivable | 335 | (20 | ) | 767 | (57 | ) | ||||||||||
| Increase (decrease) in allowance for inventory obsolescence, net | 579 | (131 | ) | 984 | 75 | |||||||||||
| Other adjustments, net | 48 | 23 | 159 | 56 | ||||||||||||
| Changes in operating assets and liabilities, net of effects of business combinations: | ||||||||||||||||
| Accounts receivable | (4,543 | ) | (462 | ) | 12,594 | (13,081 | ) | |||||||||
| Inventories | 3,653 | (30,233 | ) | 3,992 | (49,527 | ) | ||||||||||
| Prepaid expenses | 434 | (3,020 | ) | 641 | 2,177 | |||||||||||
| Contract assets | (939 | ) | 6,700 | 3,459 | 290 | |||||||||||
| Other assets | (152 | ) | 78 | (285 | ) | 3,208 | ||||||||||
| Accounts payable | 4,267 | 23,993 | (49 | ) | 31,007 | |||||||||||
| Tariff refund liability | 22,687 | — | 22,687 | — | ||||||||||||
| Income taxes receivable | 2,470 | — | 3,564 | 986 | ||||||||||||
| Accrued expenses and other current liabilities | 5,906 | (3,307 | ) | (4,528 | ) | 5,965 | ||||||||||
| Other noncurrent liabilities | (1,842 | ) | (422 | ) | (4,092 | ) | (5,219 | ) | ||||||||
| Net cash provided by operating activities | 56,594 | 20,163 | 75,724 | 25,474 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||||
| Capital expenditures | (846 | ) | (2,036 | ) | (2,736 | ) | (5,439 | ) | ||||||||
| Proceeds from disposal of assets | — | 11 | — | 11 | ||||||||||||
| Business acquisitions | — | — | (11,911 | ) | — | |||||||||||
| Net cash used in investing activities | (846 | ) | (2,025 | ) | (14,647 | ) | (5,428 | ) | ||||||||
| Cash from financing activities | ||||||||||||||||
| Repayment of long-term debt and lease liabilities | (30,758 | ) | (121 | ) | (30,938 | ) | (219 | ) | ||||||||
| Repayment of short-term financings | — | (15,000 | ) | — | (25,000 | ) | ||||||||||
| Repurchases to settle tax withholding obligations for stock-based compensation awards | — | (58 | ) | (556 | ) | (200 | ) | |||||||||
| Other financing activities, net | (4 | ) | — | (8 | ) | — | ||||||||||
| Net cash used in financing activities | (30,762 | ) | (15,179 | ) | (31,502 | ) | (25,419 | ) | ||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 24,986 | (541 | ) | 29,575 | (5,373 | ) | ||||||||||
| Cash, cash equivalents, and restricted cash at beginning of the period | 49,537 | 53,659 | 44,948 | 58,491 | ||||||||||||
| Cash, cash equivalents, and restricted cash at end of the period | $ | 74,523 | $ | 53,118 | $ | 74,523 | $ | 53,118 | ||||||||
Non-GAAP Financial Measures
In addition to the results provided in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) above, this press release also includes non-GAAP (adjusted) financial measures. Non-GAAP financial measures provide insight into selected financial information and should be evaluated in the context in which they are presented. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP, and non-GAAP financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered in conjunction with the consolidated financial statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations within the Company’s Form 10-Q for the quarter ended June 30, 2026. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated below.
| Non-GAAP Financial Measure | Comparable GAAP Financial Measure |
| Adjusted net income | Net income |
| Adjusted net income per share – diluted | Net income per share – diluted |
| EBITDA | Net income |
| Adjusted EBITDA | Net income |
The Company believes that Adjusted net income, Adjusted net income per share – diluted, EBITDA, and Adjusted EBITDA provide relevant and useful information, which is widely used by analysts, investors and competitors in its industry as well as by the Company’s management in assessing the performance of the Company. Adjusted net income is defined as net income as adjusted for certain items that the Company believes are not indicative of its ongoing operating performance. Adjusted net income per share – diluted is a measure of the Company’s diluted earnings per common share adjusted for the impact of special items. EBITDA provides the Company with an understanding of earnings before the impact of investing and financing charges and income taxes. Adjusted EBITDA further excludes the effects of other non-cash charges and certain other items that do not reflect the ordinary earnings of the Company’s operations.
Adjusted net income, Adjusted net income per share – diluted, EBITDA, and Adjusted EBITDA are used by management for various purposes, including as a measure of performance of the Company’s operations and as a basis for strategic planning and forecasting. Adjusted net income, Adjusted net income per share – diluted, and Adjusted EBITDA may be useful to an investor because these measures are widely used to evaluate companies’ operating performance without regard to items excluded from the calculation of such measures, which can vary substantially from company to company depending on the accounting methods, the book value of assets, the capital structure and the method by which the assets were acquired, among other factors. They are not, however, intended as alternative measures of operating results or cash flow from operations as determined in accordance with U.S. GAAP.
The following table presents a reconciliation from Net income to Adjusted net income for the three and six months ended June 30, 2026 and 2025 (UNAUDITED):
| (in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Net income | $ | 16,861 | $ | 51,212 | $ | 24,161 | $ | 70,294 | ||||
| Stock-based compensation 1 | 430 | 154 | 854 | 307 | ||||||||
| Severance and executive recruiting 2 | 366 | 403 | 500 | 403 | ||||||||
| Other legal matters 3 | 314 | — | 461 | — | ||||||||
| Adjusted net income | $ | 17,971 | $ | 51,769 | $ | 25,976 | $ | 71,004 | ||||
The following table presents a reconciliation from Net income per share – diluted to Adjusted net income per share – diluted for the three and six months ended June 30, 2026 and 2025 (UNAUDITED):
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Net income per share – diluted | $ | 0.73 | $ | 2.22 | $ | 1.05 | $ | 3.05 | ||||
| Stock-based compensation 1 | 0.02 | — | 0.04 | — | ||||||||
| Severance and executive recruiting 2 | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||
| Other legal matters 3 | 0.01 | — | 0.02 | — | ||||||||
| Adjusted net income per share – diluted | $ | 0.78 | $ | 2.24 | $ | 1.13 | $ | 3.07 | ||||
| Diluted shares (in thousands) | 23,072 | 23,067 | 23,067 | 23,064 | ||||||||
The following table presents a reconciliation from Net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025 (UNAUDITED):
| (in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net income | $ | 16,861 | $ | 51,212 | $ | 24,161 | $ | 70,294 | ||||||
| Interest expense | 1,570 | 1,700 | 3,315 | 3,466 | ||||||||||
| Income tax expense (benefit) | 5,611 | (20,135 | ) | 8,044 | (16,349 | ) | ||||||||
| Depreciation | 1,401 | 1,025 | 2,844 | 2,000 | ||||||||||
| Amortization of intangible assets | 280 | 306 | 529 | 613 | ||||||||||
| EBITDA | 25,723 | 34,108 | 38,893 | 60,024 | ||||||||||
| Stock-based compensation 1 | 430 | 154 | 854 | 307 | ||||||||||
| Severance and executive recruiting 2 | 366 | 403 | 500 | 403 | ||||||||||
| Other legal matters 3 | 314 | — | 461 | — | ||||||||||
| Adjusted EBITDA | $ | 26,833 | $ | 34,665 | $ | 40,708 | $ | 60,734 | ||||||
- Amounts reflect non-cash stock-based compensation expense for the three and six months ended June 30, 2026 and 2025.
- Amounts include severance expense of less than
$0.1 million and$0.1 million for the three and six months ended June 30, 2026 and 2025, respectively, as well as executive recruiting expense of$0.4 million for each period presented. - Amounts include legal settlements for the three and six months ended June 30, 2026.
Contact Power Solutions International, Inc. Kenneth Li Chief Financial Officer 630-284-9719 kli@psiengines.com